Haven Plan

Rancho Cordova, CA 95742

$556,490D-

4 bd · 3.0 ba · 2,128 sqft · Built — · SingleFamily · Active · 66 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,401/mo
• Mortgage (P&I): −$3,224
• Tax + insurance: −$1,025
• HOA: −$0
• Vac / Maint / Mgmt: −$714
• Net cashflow: $-1,562/mo
• Annual: $-18,744/yr
• Cap rate: 3.24%
• Cash-on-cash: -10.89%
• DSCR: 0.52
• 1% rule: 0.55%
• Cash to close: $172,146

Investor read

• This is a 4-bed/3.0-bath single-family listed at $556k.
• At list price, monthly cash flow is $-2k ($-19k/yr) — negative.
• To cash-flow at today's rent, offer at most $389k (30.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $340k (38.9% below list).
• It's been on market 66 days — a 6% lower offer ($523k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $340k (38.9% below list) — sets the bar for 1% rule.
• In year one you build about $66k of equity ($4k loan paydown + $61k appreciation (10.0% local appreciation)).
• Location reads 68/100 on livability (#268 in CA) — a middle-class / working-renter tenant base. Strengths: housing A+, employment B; Watch: schools C-, commute C-, crime D.
• Elk Grove Unified (suburban): math 40% / reading 51% proficiency, ranked #165 of 517 in CA (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: Rents rising (+2.1%/yr); 466 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% of comp listings sitting > 30 days — soft ceiling on asking rent; high-income renter base; 6,825 units permitted in Sacramento County in 2024 (1,752 in 5+ unit buildings).
• Sacramento County population projected at +17% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$106k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 66 days. Have you received any prior offers? Is the seller open to a 39% concession, seller financing, or rate buy-down credit?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.